It is without question that the outcome of the US election will not only affect the American people but will also have a significant impact on financial markets and economies across the world with The Guardian hailing it “the most significant election for US foreign policy since 1940.”
Whilst a re-elected Trump carried fears of a trade war with Europe, which would be damaging to both the European and US economies, and little hope of easing already strained relations with China, Biden‘s victory does not come without risk to the UK and European markets. It is argued that in Biden’s eyes, Brexit will have diminished the UK’s standing in world and our historic relationship as the conduit between the US and the EU will now be redundant. It is predicted that Biden will look to Germany, France and Ireland to form new “special relationships” potentially leaving the UK out in the cold. Whilst, potential tax hikes and excessive labour regulations may curtail U.S. growth and affect EU exports.
However, global stock markets rallied sharply on Monday, after Biden was named U.S. president-elect over the weekend, and have been propelled even higher by promising news of an effective coronavirus vaccine. Biden is widely predicted to take a more outward and globalised approach to international relations, with hopes of collaboration and compromise rather than the confrontation and conflict of the Trump era.
With stability a key factor in creating a strong environment for most businesses ability to grow, there is a high-level of optimism from economic strategists that the impact of Biden’s victory will be very positive for the post Covid-19 global economy.
And it is fair to say, as most countries across Europe are once again in some level of lockdown as they battle the second wave of Covid-19, a little hope and optimism has never been more needed.
USelection2020 #biden #trump #creditandcollections #globaleconomy
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